How Delivery-First Model is Taking Shape in India

The sector is experiencing rapid growth, driven by a surge in working professionals, increasing smartphone penetration, and the rise of nuclear families.

- SAKSHI SINGH

F ood delivery business is now an inseparable entity from the F&B landscape in India. Originally a niche sector limited to metropolitan areas, online food delivery

has now spread across the entire country, penetrating Tier II and III cities. According to a recent report by Swiggy and Bain & Company online food delivery is expected to grow at a faster rate of 18 percent compound annual growth rate (CAGR), contributing 20 percent to the overall food services market by 2030, up from the current 8 percent.

The number of orders on online food delivery platforms grew 20-fold from 2016 to 2021, with 25 million people now using food delivery apps daily. Tier II and III cities are driving much of this growth, accounting for 45 percent of orders, while metro areas are nearing saturation. Recognizing the untapped potential in non-metro cities, food tech companies are targeting these areas for expansion by offering vernacular interfaces, customized pricing, and hyperlocal menus.

Delivery First Model in Different Shape and Sizes And while watching the trend, there are a number of unique concepts of delivery first model that have evolved in India. Restaurants are increasingly venturing into cloud kitchens and virtual restaurants to cater to the delivery-only business. Swiggy and Rebel Foods have established a network of commercial